Exhibit 99.1

 

		News Release

Contact:		Ravi Ganti Investor Relations 312-394-2348   Paul Adams Corporate Communications 410-470-4167		FOR IMMEDIATE RELEASE

EXELON ANNOUNCES SOLID FOURTH QUARTER 2013 RESULTS,

PROVIDES 2014 EARNINGS EXPECTATION

CHICAGO (Feb. 6, 2014) – Exelon Corporation (NYSE: EXC) announced fourth quarter 2013 and full year consolidated earnings as follows:

 

		Full Year								Fourth Quarter
		2013				2012				2013				2012
Adjusted (non-GAAP) Operating Results:
Net Income ($ millions)		$	2,149			$	2,330			$	427			$	547
Diluted Earnings per Share		$	2.50			$	2.85			$	0.50			$	0.64
GAAP Results:
Net Income ($ millions)		$	1,719			$	1,160			$	495			$	378
Diluted Earnings per Share		$	2.00			$	1.42			$	0.58			$	0.44

“Exelon delivered another year of strong operational performance and earnings within our guidance range, despite challenging market conditions,” said Exelon President and CEO Christopher M. Crane. “On the generation side of our business, we achieved a nuclear capacity factor of greater than 94 percent in a year of record output. Each of Exelon’s three utilities had its best year in reliability and customer satisfaction.”

Fourth Quarter Operating Results

As shown in the table above, Exelon’s adjusted (non-GAAP) operating earnings decreased to $0.50 per share in the fourth quarter of 2013 from $0.64 per share in the fourth quarter of 2012. Earnings in fourth quarter 2013 primarily reflected the following negative factors:

 

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Lower realized energy prices for the sale of energy across all regions;

 

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Increased depreciation and amortization expenses, primarily from an increase in capital expenditures across the operating companies;

 

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Discrete favorable impacts of the Illinois Commerce Commission (ICC) October 2012 Distribution Rate Order; and

 

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Prior year benefits from a state tax net operating loss.

These factors were offset by:

 

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Increased capacity prices related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC market (PJM);

 

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Merger O&M synergies;

 

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Increased distribution revenue:

 

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At ComEd, due to higher allowed ROE and recovery of capital investment pursuant to the formula rate under the Energy Infrastructure Modernization Act (EIMA);

 

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At BGE, due to the rate case orders for electric and natural gas; and

 

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Decreased storm-related costs at PECO and BGE due to Hurricane Sandy in the fourth quarter of 2012.

Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2013 do not include the following items (after tax) that were included in reported GAAP earnings:

 

		(in millions)				(per diluted share)
Exelon Adjusted (non-GAAP) Operating Earnings		$	427			$	0.50
Mark-to-Market Impact of Economic Hedging Activities			143				0.16
Net Unrealized Gains Related to Nuclear Decommissioning Trust (NDT) Fund Investments			40				0.05
Plant Retirements and Divestitures			1				—
Asset Retirement Obligation			(1	)			—
Merger and Integration Costs			(21	)			(0.02	)
Midwest Generation Bankruptcy Charges			(16	)			(0.02	)
Reassessment of State Deferred Income Taxes			(4	)			—
Amortization of Commodity Contract Intangibles			(75	)			(0.09	)
Long-Lived Asset Impairments			1				—
Exelon GAAP Net Income		$	495			$	0.58

Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2012 do not include the following items (after tax) that were included in reported GAAP earnings:

 

		(in millions)				(per diluted share)
Exelon Adjusted (non-GAAP) Operating Earnings		$	547			$	0.64
Mark-to-Market Impact of Economic Hedging Activities			123				0.14
Net Unrealized Gains Related to NDT Fund Investments			2				—
Plant Retirements and Divestitures			(38	)			(0.05	)
Asset Retirement Obligation			5				0.01
Merger and Integration Costs			(46	)			(0.05	)

 

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Reassessment of State Deferred Income Taxes			1				—
Amortization of Commodity Contract Intangibles			(211	)			(0.24	)
Midwest Generation Bankruptcy Charges			(8	)			(0.01	)
Amortization of the Fair Value of Certain Debt			3				—
Exelon GAAP Net Income		$	378			$	0.44

2014 Earnings Outlook

Exelon introduced a guidance range for 2014 adjusted (non-GAAP) operating earnings of $2.25 to $2.55 per share. Operating earnings guidance is based on the assumption of normal weather.

The outlook for 2014 adjusted (non-GAAP) operating earnings for Exelon and its subsidiaries excludes the following items:

 

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Mark-to-market adjustments from economic hedging activities;

 

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Unrealized gains and losses from NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements;

 

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Certain costs incurred related to the Constellation and CENG merger and integration initiatives;

 

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Non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date;

 

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Other unusual items; and

 

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One-time impacts of adopting new accounting standards.

Fourth Quarter and Recent Highlights

 

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Nuclear Operations: Generation’s nuclear fleet, including its owned output from the Salem Generating Station, produced 35,329 gigawatt-hours (GWh) in the fourth quarter of 2013, compared with 34,882 GWh in the fourth quarter of 2012. The output data excludes the units owned by Constellation Energy Nuclear Group LLC (CENG). Excluding Salem and the units owned by CENG, the Exelon-operated nuclear plants achieved a 92.3 percent capacity factor for the fourth quarter of 2013, compared with 93.0 percent for the fourth quarter of 2012. For the full year, Exelon’s nuclear fleet produced a record 134 million net megawatt-hours of electricity and achieved a capacity factor of 94.1 percent. The number of planned refueling outage days totaled 94 in the fourth quarter of 2013, compared with 113 in the fourth quarter of 2012. There were 33 non-refueling outage days in the fourth quarter of 2013, compared with one day in the fourth quarter of 2012.

 

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Utility Operations: Each of Exelon’s three utilities had its best operating year. Operating performance in each utility improved over 2012 in all key metrics including safety, reliability, customer service and customer satisfaction. For all three, customer satisfaction and outage frequency are in the top quartile of similar utilities in the U.S.

 

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Fossil and Renewables Operations: The Dispatch Match rate for Generation’s gas/hydro fleet was 99.3 percent in the fourth quarter of 2013, compared with 95.8 percent in the fourth quarter of 2012. A higher rate of forced outages across the fleet had an impact on the performance in 2012. Energy Capture for the wind/solar fleet was 94.5 percent in the fourth quarter of 2013, compared with 92.2 percent in the fourth quarter of 2012. Energy Capture in the fourth quarter of 2013 reflects dispatch process improvements and changes to the fleet composition.

 

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ComEd Distribution Formula Rate Case: On Dec. 19, 2013, the ICC issued an Order approving ComEd’s 2013 annual distribution formula rate update case. The Order established the net revenue requirement used to set the rates that took effect in January 2014, with an increase to ComEd’s annual delivery services revenue requirement of approximately $341 million. The electric distribution rate increase was set using an allowed return on capital of 6.94 percent (inclusive of an allowed return on common equity of 8.72 percent).

 

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BGE Gas and Electric Distribution Rate Case: On Dec. 13, 2013, the Maryland Public Service Commission (MDPSC) issued Order No. 86060 related to BGE’s May 17, 2013, application for an increase in electric and gas base rates. Under the MDPSC’s Order, BGE is authorized to increase annual electric base rates by $34 million, which is approximately 41 percent of the $83 million requested in the application, and annual gas base rates by $12 million, which is approximately 52 percent of the $24 million requested. The electric distribution rate increase was set using an allowed return on equity of 9.75 percent, and the gas distribution rate increase was set using an allowed return on equity of 9.60 percent. The new electric and natural gas distribution rates took effect for services rendered on or after Dec. 13, 2013.

 

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Financing Activities: On Jan. 10, 2014, ComEd issued $300 million aggregate principal amount of its First Mortgage 2.15 percent Bonds, Series 115, due Jan. 15, 2019, and $350 million aggregate principal amount of its First Mortgage 4.70 percent Bonds, Series 116, due Jan. 15, 2044.

 

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Hedging Update: Exelon’s hedging program involves the hedging of commodity risk for Exelon’s expected generation, typically on a ratable basis over a three-year period. Expected generation represents the amount of energy estimated to be generated or purchased through owned or contracted-for capacity. The proportion of expected generation hedged as of Dec. 31, 2013, was 91 percent to 94 percent for 2014, 62 percent to 65 percent for 2015, and 30 percent to 33 percent for 2016. The primary objective of Exelon’s hedging program is to manage market risks and protect the value of its generation and its investment-grade balance sheet, while preserving its ability to participate in improving long-term market fundamentals.

Operating Company Results

Generation consists of owned and contracted electric generating facilities and wholesale and retail customer supply of electric and natural gas products and services, including renewable energy products, risk management services and natural gas exploration and production activities.

Fourth quarter 2013 GAAP net income was $269 million, compared with net income of $137 million in the fourth quarter of 2012. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2013 and 2012 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)		4Q13				4Q12
Generation Adjusted (non-GAAP) Operating Earnings		$	183			$	283
Mark-to-Market Impact of Economic Hedging Activities			143				145
Net Unrealized Gains Related to NDT Fund Investments			40				2
Plant Retirements and Divestitures			1				(38	)
Asset Retirement Obligation			(1	)			5
Merger and Integration Costs			(19	)			(35	)
Amortization of Commodity Contract Intangibles			(75	)			(211	)

 

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Amortization of Fair Value of Certain Debt			—				3
Reassessment of State Deferred Income Taxes			12				(9	)
Midwest Generation Bankruptcy Charges			(16	)			(8	)
Long-Lived Asset Impairments			1				—
Generation GAAP Net Income		$	269			$	137

Generation’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2013 decreased $100 million compared with the same quarter in 2012. This decrease primarily reflected:

 

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Lower realized energy prices for the sale of energy across all regions and

 

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Increased depreciation and amortization expense due to ongoing capital expenditures.

These items were partially offset by favorable capacity pricing related to RPM for the PJM market and favorable O&M expense primarily driven by merger synergies.

Generation’s average realized margin on all electric sales, including sales to affiliates and excluding trading activity, was $26.42 per megawatt-hour (MWh) in the fourth quarter of 2013, compared with $26.52 per MWh in the fourth quarter of 2012.

ComEd consists of electricity transmission and distribution operations in northern Illinois.

ComEd recorded GAAP net income of $109 million in the fourth quarter of 2013, compared with net income of $160 million in the fourth quarter of 2012. Adjusted (non-GAAP) operating earnings for the fourth quarter of 2012 and 2013 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)		4Q13				4Q12
ComEd Adjusted (non-GAAP) Operating Earnings		$	109			$	162
Merger and Integration Costs			—				(2	)
ComEd GAAP Net Income		$	109			$	160

ComEd’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2013 were down ($53) million from the same quarter in 2012, primarily due to the discrete impacts of the ICC October 2012 Distribution Rate Order This was partially offset by increased distribution revenue in 2013 due to higher allowed ROE and recovery of capital investment pursuant to the formula rate under EIMA and favorable weather.

For the fourth quarter of 2013, heating degree-days in the ComEd service territory were up 22.5 percent relative to the same period in 2012 and were 8.5 percent above normal. Total retail electric deliveries increased 3.7 percent in fourth quarter of 2013 compared with fourth quarter of 2012.

Weather-normalized retail electric deliveries increased 0.4 percent in the fourth quarter of 2013 relative to 2012, primarily reflecting growth in the residential sector.

 

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For ComEd, weather had a favorable after-tax effect of $8 million on fourth quarter 2013 earnings relative to 2012 and a favorable after-tax effect of $4 million relative to normal weather.

PECO consists of electricity transmission and distribution operations and retail natural gas distribution operations in southeastern Pennsylvania.

PECO’s GAAP net income in the fourth quarter of 2013 was $102 million, compared with $79 million in the fourth quarter of 2012. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2013 and 2012 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)		4Q13				4Q12
PECO Adjusted (non-GAAP) Operating Earnings		$	103			$	81
Merger and Integration Costs			(1	)			(2	)
PECO GAAP Net Income		$	102			$	79

PECO’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2013 increased $22 million from the same quarter in 2012, primarily due to decreased storm related costs and favorable weather.

For the fourth quarter of 2013, heating degree-days in the PECO service territory were up 6.4 percent relative to the same period in 2012 and were 3.2 percent below normal. Total retail electric deliveries were up 2.6 percent compared with the fourth quarter of 2012. On the gas side, deliveries in the fourth quarter of 2013 were up 4.8 percent compared with the fourth quarter of 2012.

Weather-normalized retail electric deliveries decreased 0.3 percent in the fourth quarter of 2013 relative to 2012, reflecting a decrease in deliveries to both residential and large C&I customers offset by an increase in deliveries to small C&I customers. Weather-normalized gas deliveries were down 0.6 percent in the fourth quarter of 2013.

For PECO, weather had a favorable after-tax effect of $8 million on fourth quarter 2013 earnings relative to 2012 and a favorable after-tax effect of $3 million relative to normal weather.

BGE consists of electricity transmission and distribution operations and retail natural gas distribution operations in central Maryland.

BGE’s GAAP net income in the fourth quarter of 2013 was $47 million, compared with $15 million in the fourth quarter of 2012. Adjusted (non-GAAP) Operating Earnings for the fourth quarter of 2013 and 2012 do not include various items (after tax) that were included in reported GAAP earnings. A reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Net Income is in the table below:

 

($ millions)		4Q13				4Q12
BGE Adjusted (non-GAAP) Operating Earnings		$	48			$	18
Merger and Integration Costs			(1	)			(3	)
BGE GAAP Net Income		$	47			$	15

 

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BGE’s Adjusted (non-GAAP) Operating Earnings in the fourth quarter of 2013 increased $30 million from the same quarter in 2012, primarily due to higher electric and gas distribution rates and decreased storm costs partially offset by higher depreciation and amortization expense. Due to revenue decoupling, BGE is not affected by actual weather with the exception of major storms.

Adjusted (non-GAAP) Operating Earnings

Adjusted (non-GAAP) operating earnings, which generally exclude significant one-time charges or credits that are not normally associated with ongoing operations, mark-to-market adjustments from economic hedging activities and unrealized gains and losses from NDT fund investments, are provided as a supplement to results reported in accordance with GAAP. Management uses such adjusted (non-GAAP) operating earnings measures internally to evaluate the company’s performance and manage its operations. Reconciliation of GAAP to adjusted (non-GAAP) operating earnings for historical periods is attached. Additional earnings release attachments, which include the reconciliation on page 8 are posted on Exelon’s Web site: www.exeloncorp.com and have been furnished to the Securities and Exchange Commission on Form 8-K on February 6, 2014.

Cautionary Statements Regarding Forward-Looking Information

This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, that are subject to risks and uncertainties. The factors that could cause actual results to differ materially from the forward-looking statements made by Exelon Corporation, Commonwealth Edison Company, PECO Energy Company, Baltimore Gas and Electric Company and Exelon Generation Company, LLC (Registrants) include those factors discussed herein, as well as the items discussed in (1) Exelon’s 2012 Annual Report on Form 10-K in (a) ITEM 1A. Risk Factors, (b) ITEM 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) ITEM 8. Financial Statements and Supplementary Data: Note 19; (2) Exelon’s Third Quarter 2013 Quarterly Report on Form 10-Q in (a) Part II, Other Information, ITEM 1A. Risk Factors; (b) Part 1, Financial Information, ITEM 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations and (c) Part I, Financial Information, ITEM 1. Financial Statements: Note 18; and (3) other factors discussed in filings with the SEC by the Registrants. Readers are cautioned not to place undue reliance on these forward-looking statements, which apply only as of the date of this press release. None of the Registrants undertakes any obligation to publicly release any revision to its forward-looking statements to reflect events or circumstances after the date of this press release.

# # #

Exelon Corporation is the nation’s leading competitive energy provider, with 2013 revenues of approximately $24.9 billion. Headquartered in Chicago, Exelon has operations and business activities in 47 states, the District of Columbia and Canada. Exelon is one of the largest competitive U.S. power generators, with approximately 35,000 megawatts of owned capacity comprising one of the nation’s cleanest and lowest-cost power generation fleets. The company’s Constellation business unit provides energy products and services to approximately 100,000 business and public sector customers and approximately 1 million residential customers. Exelon’s utilities deliver electricity and natural gas to more than 6.6 million customers in central Maryland (BGE), northern Illinois (ComEd) and southeastern Pennsylvania (PECO).

 

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Earnings Release Attachments

Table of Contents

 

Consolidating Statements of Operations—Three Months Ended December 31, 2013 and 2012			1
Consolidating Statements of Operations—Twelve Months Ended December 31, 2013 and 2012			2
Business Segment Comparative Statements of Operations—Generation and ComEd—Three and Twelve Months Ended December 31, 2013 and 2012			3
Business Segment Comparative Statements of Operations—PECO and BGE—Three and Twelve Months Ended December 31, 2013 and 2012			4
Business Segment Comparative Statements of Operations—Other—Three and Twelve Months Ended December 31, 2013 and 2012			5
Consolidated Balance Sheets—December 31, 2013 and December 31, 2012			6
Consolidated Statements of Cash Flows—Twelve Months Ended December 31, 2013 and 2012			7
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—Exelon—Three Months Ended December 31, 2013 and 2012			8
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—Exelon—Twelve Months Ended December 31, 2013 and 2012			9
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment—Three Months Ended December 31, 2013 and 2012			10
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Earnings By Business Segment—Twelve Months Ended December 31, 2013 and 2012			12
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—Generation—Three and Twelve Months Ended December 31, 2013 and 2012			14
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—ComEd—Three and Twelve Months Ended December 31, 2013 and 2012			15
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—PECO—Three and Twelve Months Ended December 31, 2013 and 2012			16
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—BGE—Three Months Ended December 31, 2013 and 2012, and Twelve Months Ended and March 12, 2012 through December 30, 2013 and 2012, respectively.			17
Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations—Other—Three and Twelve Months Ended December 31, 2013 and 2012			18
Exelon Generation Statistics—Three Months Ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013 and December 31, 2012			19
Exelon Generation Statistics—Twelve Months Ended December 31, 2013 and 2012			20
ComEd Statistics—Three and Twelve Months Ended December 31, 2013 and 2012			21
PECO Statistics—Three and Twelve Months Ended December 31, 2013 and 2012			22
BGE Statistics—Three and Twelve Months Ended December 31, 2013 and 2012			23

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EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

		Three Months Ended December 31, 2013
		Generation				ComEd				PECO				BGE				Other (a)				Exelon Consolidated
Operating revenues		$	3,785			$	1,068			$	805			$	794			$	(277	)		$	6,175
Operating expenses
Purchased power and fuel			1,915				243				347				362				(274	)			2,593
Operating and maintenance			1,157				347				194				185				(4	)			1,879
Depreciation and amortization			214				168				58				95				12				547
Taxes other than income			97				74				38				51				10				270
Total operating expenses			3,383				832				637				693				(256	)			5,289
Equity in earnings of unconsolidated affiliates			3				—				—				—				—				3
Operating income (loss)			405				236				168				101				(21	)			889
Other income and (deductions)
Interest expense			(99	)			(76	)			(29	)			(28	)			(14	)			(246	)
Other, net			138				8				2				4				10				162
Total other income and (deductions)			39				(68	)			(27	)			(24	)			(4	)			(84	)
Income (loss) before income taxes			444				168				141				77				(25	)			805
Income taxes			179				59				39				27				7				311
Net income (loss)			265				109				102				50				(32	)			494
Net income (loss) attributable to noncontrolling interests and preference stock dividends			(4	)			—				—				3				—				(1	)
Net income (loss) attributable to common shareholders		$	269			$	109			$	102			$	47			$	(32	)		$	495
		Three Months Ended December 31, 2012
		Generation				ComEd				PECO				BGE				Other (a)				Exelon Consolidated
Operating revenues		$	3,898			$	1,289			$	790			$	703			$	(426	)		$	6,254
Operating expenses
Purchased power and fuel			2,043				421				342				326				(373	)			2,759
Operating and maintenance			1,242				345				235				185				(11	)			1,996
Depreciation and amortization			204				152				56				80				13				505
Taxes other than income			97				71				40				51				9				268
Total operating expenses			3,586				989				673				642				(362	)			5,528
Equity in (losses) of unconsolidated affiliates			(22	)			—				—				—				—				(22	)
Operating income			290				300				117				61				(64	)			704
Other income and (deductions)
Interest expense			(78	)			(77	)			(30	)			(34	)			(12	)			(231	)
Other, net			54				27				2				5				5				93
Total other income and (deductions)			(24	)			(50	)			(28	)			(29	)			(7	)			(138	)
Income (loss) before income taxes			266				250				89				32				(71	)			566
Income taxes			127				90				9				14				(58	)			182
Net income (loss)			139				160				80				18				(13	)			384
Net income attributable to noncontrolling interests, preferred security dividends and preference stock dividends			2				—				1				3				—				6
Net income (loss) attributable to common shareholders		$	137			$	160			$	79			$	15			$	(13	)		$	378

 

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

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EXELON CORPORATION

Consolidating Statements of Operations

(unaudited)

(in millions)

 

		Twelve Months Ended December 31, 2013
		Generation				ComEd				PECO				BGE				Other (b)				Exelon Consolidated
Operating revenues		$	15,643			$	4,464			$	3,100			$	3,065			$	(1,371	)		$	24,901
Operating expenses
Purchased power and fuel			8,210				1,174				1,300				1,421				(1,368	)			10,737
Operating and maintenance			4,534				1,368				748				634				(14	)			7,270
Depreciation and amortization			856				669				228				348				52				2,153
Taxes other than income			389				299				158				213				36				1,095
Total operating expenses			13,989				3,510				2,434				2,616				(1,294	)			21,255
Equity in earnings of unconsolidated affiliates			10				—				—				—				—				10
Operating income (loss)			1,664				954				666				449				(77	)			3,656
Other income and (deductions)
Interest expense			(357	)			(579	)			(115	)			(122	)			(183	)			(1,356	)
Other, net			368				26				6				17				56				473
Total other income and (deductions)			11				(553	)			(109	)			(105	)			(127	)			(883	)
Income (loss) before income taxes			1,675				401				557				344				(204	)			2,773
Income taxes			615				152				162				134				(19	)			1,044
Net income (loss)			1,060				249				395				210				(185	)			1,729
Net income (loss) attributable to noncontrolling interests, preferred security dividends and redemption and preference stock dividends			(10	)			—				7				13				—				10
Net income (loss) attributable to common shareholders		$	1,070			$	249			$	388			$	197			$	(185	)		$	1,719
		Twelve Months Ended December 31, 2012 (a)
		Generation				ComEd				PECO				BGE				Other (b)				Exelon Consolidated
Operating revenues		$	14,437			$	5,443			$	3,186			$	2,091			$	(1,668	)		$	23,489
Operating expenses
Purchased power and fuel			7,061				2,307				1,375				1,052				(1,638	)			10,157
Operating and maintenance			5,028				1,345				809				596				183				7,961
Depreciation and amortization			768				610				217				238				48				1,881
Taxes other than income			369				295				162				167				26				1,019
Total operating expenses			13,226				4,557				2,563				2,053				(1,381	)			21,018
Equity in (losses of) unconsolidated affiliates			(91	)			—				—				—				—				(91	)
Operating income (loss)			1,120				886				623				38				(287	)			2,380
Other income and (deductions)
Interest expense			(301	)			(307	)			(123	)			(111	)			(86	)			(928	)
Other, net			239				39				8				19				41				346
Total other income and (deductions)			(62	)			(268	)			(115	)			(92	)			(45	)			(582	)
Income (loss) before income taxes			1,058				618				508				(54	)			(332	)			1,798
Income taxes			500				239				127				(23	)			(216	)			627
Net income (loss)			558				379				381				(31	)			(116	)			1,171
Net income (loss) attributable to noncontrolling interests, preferred security dividends and preference stock dividends			(4	)			—				4				11				—				11
Net income (loss) attributable to common shareholders		$	562			$	379			$	377			$	(42	)		$	(116	)		$	1,160

 

(a)	Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

(b)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

 

2

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EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

		Generation
		Three Months Ended December 31,												Twelve Months Ended December 31,
		2013				2012				Variance				2013				2012 (a)				Variance
Operating revenues		$	3,785			$	3,898			$	(113	)		$	15,643			$	14,437			$	1,206
Operating expenses
Purchased power and fuel			1,915				2,043				(128	)			8,210				7,061				1,149
Operating and maintenance			1,157				1,242				(85	)			4,534				5,028				(494	)
Depreciation and amortization			214				204				10				856				768				88
Taxes other than income			97				97				—				389				369				20
Total operating expenses			3,383				3,586				(203	)			13,989				13,226				763
Equity in earnings (loss) of unconsolidated affiliates			3				(22	)			25				10				(91	)			101
Operating income			405				290				115				1,664				1,120				544
Other income and (deductions)
Interest expense			(99	)			(78	)			(21	)			(357	)			(301	)			(56	)
Other, net			138				54				84				368				239				129
Total other income and (deductions)			39				(24	)			63				11				(62	)			73
Income before income taxes			444				266				178				1,675				1,058				617
Income taxes			179				127				52				615				500				115
Net income			265				139				126				1,060				558				502
Net income (loss) attributable to noncontrolling interests			(4	)			2				(6	)			(10	)			(4	)			(6	)
Net income attributable to membership interest		$	269			$	137			$	132			$	1,070			$	562			$	508

 

(a)	Includes financial results for Constellation beginning on March 12, 2012, the date the merger was completed.

 

		ComEd
		Three Months Ended December 31,												Twelve Months Ended December 31,
		2013				2012				Variance				2013				2012				Variance
Operating revenues		$	1,068			$	1,289			$	(221	)		$	4,464			$	5,443			$	(979	)
Operating expenses
Purchased power			243				421				(178	)			1,174				2,307				(1,133	)
Operating and maintenance			347				345				2				1,368				1,345				23
Depreciation and amortization			168				152				16				669				610				59
Taxes other than income			74				71				3				299				295				4
Total operating expenses			832				989				(157	)			3,510				4,557				(1,047	)
Operating income			236				300				(64	)			954				886				68
Other income and (deductions)
Interest expense			(76	)			(77	)			1				(579	)			(307	)			(272	)
Other, net			8				27				(19	)			26				39				(13	)
Total other income and (deductions)			(68	)			(50	)			(18	)			(553	)			(268	)			(285	)
Income before income taxes			168				250				(82	)			401				618				(217	)
Income taxes			59				90				(31	)			152				239				(87	)
Net income		$	109			$	160			$	(51	)		$	249			$	379			$	(130	)

 

3

---

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

		PECO
		Three Months Ended December 31,												Twelve Months Ended December 31,
		2013				2012				Variance				2013				2012				Variance
Operating revenues		$	805			$	790			$	15			$	3,100			$	3,186			$	(86	)
Operating expenses
Purchased power and fuel			347				342				5				1,300				1,375				(75	)
Operating and maintenance			194				235				(41	)			748				809				(61	)
Depreciation and amortization			58				56				2				228				217				11
Taxes other than income			38				40				(2	)			158				162				(4	)
Total operating expenses			637				673				(36	)			2,434				2,563				(129	)
Operating income			168				117				51				666				623				43
Other income and (deductions)
Interest expense			(29	)			(30	)			1				(115	)			(123	)			8
Other, net			2				2				—				6				8				(2	)
Total other income and (deductions)			(27	)			(28	)			1				(109	)			(115	)			6
Income before income taxes			141				89				52				557				508				49
Income taxes			39				9				30				162				127				35
Net income			102				80				22				395				381				14
Preferred security dividends and redemption			—				1				(1	)			7				4				3
Net income attributable to common shareholder		$	102			$	79			$	23			$	388			$	377			$	11
		BGE
		Three Months Ended December 31,												Twelve Months Ended December 31,
		2013				2012				Variance				2013				2012 (a)				Variance
Operating revenues		$	794			$	703			$	91			$	3,065			$	2,091			$	974
Operating expenses
Purchased power and fuel			362				326				36				1,421				1,052				369
Operating and maintenance			185				185				—				634				596				38
Depreciation and amortization			95				80				15				348				238				110
Taxes other than income			51				51				—				213				167				46
Total operating expenses			693				642				51				2,616				2,053				563
Operating income			101				61				40				449				38				411
Other income and (deductions)
Interest expense			(28	)			(34	)			6				(122	)			(111	)			(11	)
Other, net			4				5				(1	)			17				19				(2	)
Total other income and (deductions)			(24	)			(29	)			5				(105	)			(92	)			(13	)
Income (loss) before income taxes			77				32				45				344				(54	)			398
Income taxes			27				14				13				134				(23	)			157
Net income (loss)			50				18				32				210				(31	)			241
Preference stock dividends			3				3				—				13				11				2
Net income (loss) attributable to common shareholders		$	47			$	15			$	32			$	197			$	(42	)		$	239

 

(a)	Includes financial results for BGE beginning on March 12, 2012, the date the merger was completed.

 

4

---

EXELON CORPORATION

Business Segment Comparative Statements of Operations

(unaudited)

(in millions)

 

		Other (a)
		Three Months Ended December 31,												Twelve Months Ended December 31,
		2013				2012				Variance				2013				2012 (b)				Variance
Operating revenues		$	(277	)		$	(426	)		$	149			$	(1,371	)		$	(1,668	)		$	297
Operating expenses
Purchased power and fuel			(274	)			(373	)			99				(1,368	)			(1,638	)			270
Operating and maintenance			(4	)			(11	)			7				(14	)			183				(197	)
Depreciation and amortization			12				13				(1	)			52				48				4
Taxes other than income			10				9				1				36				26				10
Total operating expenses			(256	)			(362	)			106				(1,294	)			(1,381	)			87
Operating loss			(21	)			(64	)			43				(77	)			(287	)			210
Other income and (deductions)
Interest expense			(14	)			(12	)			(2	)			(183	)			(86	)			(97	)
Other, net			10				5				5				56				41				15
Total other income and (deductions)			(4	)			(7	)			3				(127	)			(45	)			(82	)
Loss before income taxes			(25	)			(71	)			46				(204	)			(332	)			128
Income taxes			7				(58	)			65				(19	)			(216	)			197
Net loss		$	(32	)		$	(13	)		$	(19	)		$	(185	)		$	(116	)		$	(69	)

 

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(b)	Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

 

5

---

EXELON CORPORATION

Consolidated Balance Sheets

(in millions)

 

		December 31, 2013				December 31, 2012
		(unaudited)
ASSETS
Current assets
Cash and cash equivalents		$	1,547			$	1,411
Cash and cash equivalents of variable interest entities			62				75
Restricted cash and investments			87				86
Restricted cash and investments of variable interest entities			80				47
Accounts receivable, net
Customer			2,694				2,795
Other			1,201				1,141
Accounts receivable, net, of variable interest entities			261				292
Mark-to-market derivative assets			727				938
Unamortized energy contract assets			374				886
Inventories, net
Fossil fuel			276				246
Materials and supplies			829				768
Deferred income taxes			573				131
Regulatory assets			760				764
Other			666				560
Total current assets			10,137				10,140
Property, plant and equipment, net			47,330				45,186
Deferred debits and other assets
Regulatory assets			5,910				6,497
Nuclear decommissioning trust funds			8,071				7,248
Investments			1,165				1,184
Investments in affiliates			22				22
Investment in CENG			1,925				1,849
Goodwill			2,625				2,625
Mark-to-market derivative assets			607				937
Unamortized energy contract assets			710				1,073
Pledged assets for Zion Station decommissioning			458				614
Deferred income taxes			—				58
Other			964				1,128
Total deferred debits and other assets			22,457				23,235
Total assets		$	79,924			$	78,561
Liabilities and shareholders’ equity
Current liabilities
Short-term borrowings		$	341			$	—
Short-term notes payable—accounts receivable agreement			—				210
Long-term debt due within one year			1,424				975
Long-term debt due within one year of variable interest entities			85				72
Accounts payable			2,336				2,398
Accounts payable of variable interest entities			170				202
Payables to affiliates			95				92
Mark-to-market derivative liabilities			159				352
Unamortized energy contract liabilities			261				455
Accrued expenses			1,633				1,796
Deferred income taxes			40				58
Regulatory liabilities			327				368
Other			856				813
Total current liabilities			7,727				7,791
Long-term debt			17,325				17,190
Long-term debt to financing trusts			648				648
Long-term debt of variable interest entities			298				508
Deferred credits and other liabilities
Deferred income taxes and unamortized investment tax credits			12,905				11,551
Asset retirement obligations			5,195				5,074
Pension obligations			1,876				3,428
Non-pension postretirement benefit obligations			2,190				2,662
Spent nuclear fuel obligation			1,021				1,020
Regulatory liabilities			4,388				3,981
Mark-to-market derivative liabilities			300				281
Unamortized energy contract liabilities			266				528
Payable for Zion Station decommissioning			305				432
Other			2,540				1,650
Total deferred credits and other liabilities			30,986				30,607
Total liabilities			56,984				56,744
Commitments and contingencies
Preferred securities of subsidiary			—				87
Shareholders’ equity
Common stock			16,741				16,632
Treasury stock, at cost			(2,327	)			(2,327	)
Retained earnings			10,358				9,893
Accumulated other comprehensive loss, net			(2,040	)			(2,767	)
Total shareholders’ equity			22,732				21,431
BGE preference stock not subject to mandatory redemption			193				193
Noncontrolling interest			15				106
Total equity			22,940				21,730
Total liabilities and shareholders’ equity		$	79,924			$	78,561

 

6

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EXELON CORPORATION

Consolidated Statements of Cash Flows

(unaudited)

(in millions)

 

		Twelve Months Ended December 31,
		2013				2012 (a)
Cash flows from operating activities
Net income		$	1,729			$	1,171
Adjustments to reconcile net income to net cash flows provided by operating activities:
Depreciation, amortization, depletion and accretion, including nuclear fuel and energy contract amortization			3,779				4,079
Loss on sale of three Maryland generating stations			—				272
Deferred income taxes and amortization of investment tax credits			119				615
Net fair value changes related to derivatives			(445	)			(604	)
Net realized and unrealized gains on nuclear decommissioning trust fund investments			(170	)			(157	)
Other non-cash operating activities			876				1,383
Changes in assets and liabilities:
Accounts receivable			(98	)			243
Inventories			(100	)			26
Accounts payable, accrued expenses and other current liabilities			(92	)			(632	)
Option premiums paid, net			(36	)			(114	)
Counterparty collateral received, net			215				135
Income taxes			883				544
Pension and non-pension postretirement benefit contributions			(422	)			(462	)
Other assets and liabilities			105				(368	)
Net cash flows provided by operating activities			6,343				6,131
Cash flows from investing activities
Capital expenditures			(5,395	)			(5,789	)
Proceeds from nuclear decommissioning trust fund sales			4,217				7,265
Investment in nuclear decommissioning trust funds			(4,450	)			(7,483	)
Cash and restricted cash acquired from Constellation			—				964
Acquisitions of long lived assets			—				(21	)
Proceeds from sale of long-lived assets			32				371
Proceeds from sales of investments			22				28
Purchases of investments			(4	)			(13	)
Change in restricted cash			(43	)			(34	)
Distribution from CENG			115				—
Other investing activities			112				136
Net cash flows used in investing activities			(5,394	)			(4,576	)
Cash flows from financing activities
Payment of accounts receivable agreement			(210	)			(15	)
Changes in short-term debt			332				(197	)
Issuance of long-term debt			2,055				2,027
Retirement of long-term debt			(1,589	)			(1,145	)
Redemption of preferred securities			(93	)			—
Dividends paid on common stock			(1,249	)			(1,716	)
Proceeds from employee stock plans			47				72
Other financing activities			(119	)			(111	)
Net cash flows used in financing activities			(826	)			(1,085	)
Increase in cash and cash equivalents			123				470
Cash and cash equivalents at beginning of period			1,486				1,016
Cash and cash equivalents at end of period		$	1,609			$	1,486

 

(a)	Includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

 

7

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)

 

		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non-GAAP				GAAP (a)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	6,175			$	79	(b),(c)		$	6,254			$	6,254			$	160	(b),(c),(e)		$	6,414
Operating expenses
Purchased power and fuel			2,593				208	(b),(c)			2,801				2,759				66	(b),(c),(e)			2,825
Operating and maintenance								(d),(e),(f),												(d),(e),(f),
			1,879				(47	)(g),(h)			1,832				1,996				(130	)(h)			1,866
Depreciation and amortization			547				(2	)(e)			545				505				(3	)(e)			502
Taxes other than income			270				—				270				268				(3	)(e)			265
Total operating expenses			5,289				159				5,448				5,528				(70	)			5,458
Equity in earnings of unconsolidated affiliates			3				30	(c),(d)			33				(22	)			40	(c)			18
Operating income			889				(50	)			839				704				270				974
Other income and (deductions)
Interest expense			(246	)			—				(246	)			(231	)			(5	)(k)			(236	)
Other, net			162				(118	)(i)			44				93				(20	)(d),(e),(i)			73
Total other income and (deductions)			(84	)			(118	)			(202	)			(138	)			(25	)			(163	)
Income before income taxes			805				(168	)			637				566				245				811
								(b),(c),(d),												(b),(c),(d),
								(e),(f),(g),												(e),(f),(h),
Income taxes			311				(104	)(h),(i),(j)			207				182				76	(i),(j),(k)			258
Net income			494				(64	)			430				384				169				553
Net income (loss) attributable to noncontrolling interests and preference stock dividends			(1	)			4	(g)			3				6				—				6
Net income attributable to common shareholders		$	495			$	(68	)		$	427			$	378			$	169			$	547
Effective tax rate			38.6	%							32.5	%			32.2	%							31.8	%
Earnings per average common share
Basic		$	0.58			$	(0.08	)		$	0.50			$	0.44			$	0.20			$	0.64
Diluted		$	0.58			$	(0.08	)		$	0.50			$	0.44			$	0.20			$	0.64
Average common shares outstanding
Basic			857								857				854								854
Diluted			861								861				857								857
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (b)						$	(0.16	)										$	(0.14	)
Amortization of commodity contract intangibles (c)							0.09												0.24
Merger and integration costs (d)							0.02												0.05
Plant retirements and divestitures (e)							—												0.05
Asset retirement obligation (f)							—												(0.01	)
Midwest Generation Bankruptcy Charges (h)							0.02												0.01
Unrealized gains related to NDT fund investments (i)							(0.05	)											—
Reassessment of state deferred income taxes (j)							—												—
Total adjustments						$	(0.08	)										$	0.20

 

(a)	Results reported in accordance with accounting principles generally accepted in the United States (GAAP).

(b)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(c)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.

(d)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

(e)	Adjustment to exclude the impacts associated with the sale or retirement of generating stations.

(f)	Adjustment to exclude the increase in Generation’s asset retirement obligation in 2013 primarily for asbestos at retired fossil power plants and a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations in 2012.

(g)	Adjustment to exclude the impacts of the impairment of certain wind generating assets.

(h)	Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy.

(i)	Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(j)	Adjustment to exclude the impacts of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012.

(k)	Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date, which was retired in the second quarter of 2013.

 

8

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to GAAP Consolidated Statements of Operations

(unaudited)

(in millions, except per share data)

 

		Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012 (a)
		GAAP (b)				Adjustments				Adjusted Non-GAAP				GAAP (b)				Adjustments				Adjusted Non-GAAP
Operating revenues																				(c),(d),(e),
		$	24,901			$	541	(c),(d)		$	25,442			$	23,489			$	1,185	(n)		$	24,674
Operating expenses
Purchased power and fuel																				(c),(d),(e),
			10,737				563	(c),(d)			11,300				10,157				607	(f)			10,764
Operating and maintenance																				(d),(e),(f),
								(e),(f),(g),												(h),(i),(l),
			7,270				(312	)(h),(i)			6,958				7,961				(1,182	)(m),(n),(o)			6,779
Depreciation and amortization			2,153				(5	)(e),(f)			2,148				1,881				(47	)(e),(f)			1,834
Taxes other than income			1,095				—				1,095				1,019				(9	)(e),(f),(n)			1,010
Total operating expenses			21,255				246				21,501				21,018				(631	)			20,387
Equity in earnings (loss) of unconsolidated affiliates			10				92	(d),(f)			102				(91	)			150	(d),(f)			59
Operating income			3,656				387				4,043				2,380				1,966				4,346
Other income and (deductions)
Interest expense								(f),(g),(j),
			(1,356	)			370	(k)			(986	)			(928	)			(13	)(f),(j)			(941	)
Other, net								(e),(f),(j),
			473				(235	)(l)			238				346				(94	)(e),(f),(l)			252
Total other income and (deductions)			(883	)			135				(748	)			(582	)			(107	)			(689	)
Income before income taxes			2,773				522				3,295				1,798				1,859				3,657
Income taxes								(c),(d),(e),												(c),(d),(e),
								(f),(g),(h),												(f),(h),(j),
								(i),(j),(k),												(i),(l),(m),
			1,044				88	(l),(m)			1,132				627				689	(n),(o),			1,316
Net income			1,729				434				2,163				1,171				1,170				2,341
Net income attributable to noncontrolling interests, preferred security dividends and redemption and preference stock dividends			10				4	(g)			14				11				—				11
Net income attributable to common shareholders		$	1,719			$	430			$	2,149			$	1,160			$	1,170			$	2,330
Effective tax rate			37.6	%							34.4	%			34.9	%							36.0	%
Earnings per average common share
Basic		$	2.01			$	0.50			$	2.51			$	1.42			$	1.43			$	2.85
Diluted		$	2.00			$	0.50			$	2.50			$	1.42			$	1.43			$	2.85
Average common shares outstanding
Basic			856								856				816								816
Diluted			860								860				819								819
Effect of adjustments on earnings per average diluted common share recorded in accordance with GAAP:
Mark-to-market impact of economic hedging activities (c)						$	(0.35	)										$	(0.38	)
Amortization of commodity contract intangibles (d)							0.41												0.93
Plant retirements and divestitures (e)							(0.02	)											0.29
Merger and integration costs (f)							0.08												0.31
Long-lived asset impairment (g)							0.14												—
Asset retirement obligation (h)							0.01												—
Midwest Generation bankruptcy charges (i)							0.02												0.01
Amortization of the fair value of certain debt (j)							(0.01	)											(0.01	)
Remeasurement of like-kind exchange tax position (k)							0.31												—
Unrealized gains related to NDT fund investments (l)							(0.09	)											(0.07	)
Reassessment of state deferred income taxes (m)							—												(0.14	)
Maryland commitments (n)							—												0.28
FERC settlement (o)							—												0.21
Total adjustments						$	0.50											$	1.43

 

(a)	For the twelve months ended December 31, 2012, includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.

(b)	Results reported in accordance with GAAP.

(c)	Adjustment to exclude the mark-to-market impact of Exelon’s economic hedging activities, net of intercompany eliminations.

(d)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.

(e)	Adjustment to exclude the impacts associated with the sale or retirement of generating stations.

(f)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

(g)	Adjustment to exclude the impairment of the cancellation of previously capitalized nuclear uprate projects and the impairment of certain wind generating assets.

(h)	Adjustment in 2013 to exclude an increase in Generation’s asset retirement obligation primarily for asbestos at retired fossil power plants, and in 2012 to exclude a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations.

(i)	Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy.

(j)	Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date, which was retired in the second quarter of 2013.

(k)	Adjustment to exclude a non-cash charge to earnings resulting from the first quarter 2013 remeasurement of a like-kind exchange tax position taken on ComEd’s 1999 sale of fossil generating assets.

(l)	Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(m)	Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012.

(n)	Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.

(o)	Adjustment to exclude costs associated with a March 2012 settlement with the FERC to resolve a dispute related to Constellation’s prior period hedging and risk management transactions.

 

9

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Three Months Ended December 31, 2013 and 2012

(unaudited)

 

		Exelon Earnings per Diluted Share				Generation				ComEd				PECO				BGE				Other (a)				Exelon
2012 GAAP Earnings (Loss)		$	0.44			$	137			$	160			$	79			$	15			$	(13	)		$	378
2012 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities			(0.14	)			(145	)			—				—				—				22				(123	)
Unrealized Gains Related to NDT Fund Investments (1)			—				(2	)			—				—				—				—				(2	)
Plant Retirements and Divestitures (2)			0.05				38				—				—				—				—				38
Merger and Integration Costs (3)			0.05				35				2				2				3				4				46
Reassessment of State Deferred Income Taxes (4)			—				9				—				—				—				(10	)			(1	)
Amortization of Commodity Contract Intangibles (5)			0.24				211				—				—				—				—				211
Amortization of the Fair Value of Certain Debt (6)			—				(3	)			—				—				—				—				(3	)
Asset Retirement Obligation (7)			(0.01	)			(5	)			—				—				—				—				(5	)
Midwest Generation Bankruptcy Charges (8)			0.01				8				—				—				—				—				8
2012 Adjusted (non-GAAP) Operating Earnings (Loss)			0.64				283				162				81				18				3				547
Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Volume (9)			0.01				11				—				—				—				—				11
Nuclear Fuel Costs (10)			(0.01	)			(7	)			—				—				—				—				(7	)
Capacity Pricing (11)			0.09				75				—				—				—				—				75
Market and Portfolio Conditions (12)			(0.20	)			(175	)			—				—				—				—				(175	)
Transmission Upgrades (13)			—				(9	)			—				—				—				9				—
ComEd, PECO and BGE Margins:
Weather			0.02				—				8				8				—				—	(b)			16
Load			—				—				1				1				—				—	(b)			2
Discrete Impacts of the 2012 Distribution Formula Rate Order (14)			(0.05	)			—				(44	)			—				—				—				(44	)
Other Energy Delivery (15)			0.05				—				10				(3	)			33				—				40
Operating and Maintenance Expense:
Labor, Contracting and Materials (16)			(0.05	)			(23	)			(5	)			(2	)			(9	)			—				(39	)
Planned Nuclear Refueling Outages			—				(2	)			—				—				—				—				(2	)
Pension and Non-Pension Postretirement Benefits			—				(4	)			(2	)			2				—				—				(4	)
Other Operating and Maintenance (17)			0.08				43				4				23				7				(9	)			68
Depreciation and Amortization Expense (18)			(0.03	)			(6	)			(9	)			(1	)			(8	)			(1	)			(25	)
Equity in Earnings of Unconsolidated Affiliates (19)			0.01				10				—				—				—				—				10
Income Taxes (20)			(0.02	)			12				(3	)			(10	)			4				(19	)			(16	)
Interest Expense, Net (21)			(0.02	)			(9	)			(11	)			1				4				—				(15	)
Other (22)			(0.02	)			(16	)			(2	)			3				(1	)			1				(15	)
2013 Adjusted (non-GAAP) Operating Earnings (Loss)			0.50				183				109				103				48				(16	)			427
2013 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities			0.16				143				—				—				—				—				143
Unrealized Gains Related to NDT Fund Investments (1)			0.05				40				—				—				—				—				40
Plant Retirements and Divestitures (2)			—				1				—				—				—				—				1
Merger and Integration Costs (3)			(0.02	)			(19	)			—				(1	)			(1	)			—				(21	)
Reassessment of State Deferred Income Taxes (4)			—				12				—				—				—				(16	)			(4	)
Amortization of Commodity Contract Intangibles (5)			(0.09	)			(75	)			—				—				—				—				(75	)
Amortization of the Fair Value of Certain Debt (6)			—				—				—				—				—				—				—
Asset Retirement Obligation (7)			—				(1	)			—				—				—				—				(1	)
Midwest Generation Bankruptcy Charges (8)			(0.02	)			(16	)			—				—				—				—				(16	)
Long-Lived Asset Impairments			—				1				—				—				—				—				1
2013 GAAP Earnings (Loss)		$	0.58			$	269			$	109			$	102			$	47			$	(32	)		$	495

 

Note:

Effective in the fourth quarter of 2013 Exelon switched from applying a blended tax rate to applying a marginal tax rate to the drivers and exclusions presented above, resulting in minor changes when comparing to historical earnings release filings.

(a)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(b)	As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.

(1)    Reflects the impact of unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements. (2)    Reflects the impacts associated with the sale or retirement of generating stations. (3)    Reflects certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and Constellation Energy Nuclear Group, LLC (CENG) transaction costs. (4)    Reflects the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012. (5)    Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date. (6)    Represents the non-cash amortization of certain debt recorded at fair value at the merger date, which was retired in the second quarter of 2013. (7)    In 2012, primarily reflects a decrease in Generation’s asset retirement obligation for retired fossil power plants. In 2013, primarily reflects an increase in Generation’s asset retirement obligation primarily for asbestos at retired fossil power plants. (8)    For Generation, reflects estimated liabilities pursuant to the Midwest Generation bankruptcy. (9)    Primarily reflects the impact of decreased planned nuclear outage days in 2013, including Salem but excluding CENG. (10)  Primarily reflects the impact of higher nuclear fuel prices during the amortization period, excluding CENG. (11)  Primarily reflects the impact of increased capacity prices related to the Reliability Pricing Model (RPM) for the PJM Interconnection, LLC (PJM) market. (12)  Primarily reflects the impact of decreased realized energy prices. (13)  For Generation, reflects PJM bill credits in 2012 related to upgrades in transmission assets owned by ComEd, which are reflected as assets at Exelon Corporate. (14)  Reflects the impacts of the October 2012 rehearing order issued by the Illinois Commerce Commission (ICC) related to ComEd’s recovery of pension asset costs associated with ComEd’s 2011 performance based formula rate proceeding under the Energy Infrastructure Modernization Act (EIMA) which reestablished ComEd’s position on its pension asset. (15)  For ComEd, primarily reflects increased distribution revenue due to recovery of increased costs and capital investments and higher allowed ROE pursuant to the formula rate under EIMA and the May 2013 enactment of Senate Bill 9. For BGE, includes increased distribution revenue pursuant to electric and natural gas distribution rate case orders issued by the Maryland PSC and increased cost recovery for energy efficiency and demand response programs (primarily offset in depreciation and amortization expense). (16)  Primarily reflects inflation across all operating companies, an increase in nuclear contracting costs at Generation, an increase in EIMA costs at ComEd, and an increase in costs at BGE as a result of increased MDPSC reliability standards, partially offset by realized merger synergies at Generation. (17)  Primarily reflects the impact of merger synergy savings for Exelon’s corporate operations and shared service entities across all operating companies, decreased planned nuclear outages at Salem, a NEIL insurance credit at Generation, and decreased storm restoration costs in the PECO and BGE service territories. (18)  Primarily reflects increased depreciation expense across the operating companies for ongoing capital expenditures. Reflects increased regulatory asset amortization at ComEd related to higher MGP remediation expenditures and at BGE reflects increased regulatory asset amortization related to higher energy efficiency and demand response program expenditures (primarily offset in other energy delivery revenue). (19)  Primarily reflects equity in earnings in CENG, partially offset by the non-cash amortization of the fair value basis difference recorded at the merger date. (20)  Primarily reflects a decrease in benefits for the gas property repair deduction at PECO and higher prior year benefits from a state tax net operating loss, partially offset by an increase in wind production and investment tax credit benefits at Generation. (21)  At Generation, reflects higher interest expense due to higher outstanding debt primarily relating to increased project financing. At ComEd, primarily reflects lower interest expense in 2012 related to the final 1999-2001 IRS settlement reached in the fourth quarter of 2012. (22)  For Generation, primarily reflects lower realized NDT fund gains.

 

10

---

EXELON CORPORATION (a)

Reconciliation of Adjusted (non-GAAP) Operating

Earnings to GAAP Earnings (in millions)

Twelve Months Ended December 31, 2013 and 2012

(unaudited)

 

		Exelon Earnings per Diluted Share				Generation				ComEd				PECO				BGE				Other (b)				Exelon
2012 GAAP Earnings (Loss)		$	1.42			$	562			$	379			$	377			$	(42	)		$	(116	)		$	1,160
2012 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities			(0.38	)			(312	)			—				—				—				2				(310	)
Unrealized Gains Related to NDT Fund Investments (1)			(0.07	)			(56	)			—				—				—				—				(56	)
Plant Retirements and Divestitures (2)			0.29				236				—				—				—				—				236
Asset Retirement Obligation (3)			—				1				—				—				—				—				1
Merger and Integration Costs (4)			0.31				167				2				10				5				73				257
Maryland Commitments (5)			0.28				22				—				—				83				122				227
Amortization of Commodity Contract Intangibles (6)			0.93				758				—				—				—				—				758
Amortization of the Fair Value of Certain Debt (7)			(0.01	)			(9	)			—				—				—				—				(9	)
FERC Settlement (8)			0.21				172				—				—				—				—				172
Reassessment of State Deferred Income Taxes (9)			(0.14	)			(4	)			—				—				—				(113	)			(117	)
Midwest Generation Bankruptcy Charges (10)			0.01				8				—				—				—				—				8
Other Acquisition Costs			—				3				—				—				—				—				3
2012 Adjusted (non-GAAP) Operating Earnings (Loss)			2.85				1,548				381				387				46				(32	)			2,330
Year Over Year Effects on Earnings:
Generation Energy Margins, Excluding Mark-to-Market:
Nuclear Volume (13)			0.06				51				—				—				—				—				51
Nuclear Fuel Costs (14)			(0.05	)			(46	)			—				—				—				—				(46	)
Capacity Pricing (15)			0.13				111				—				—				—				—				111
Market and Portfolio Conditions (16)			(0.42	)			(365	)			—				—				—				—				(365	)
Transmission Upgrade (17)			—				(9	)			—				—				—				9				—
ComEd, PECO and BGE Margins:
Weather			0.01				—				(10	)			22				—	(c)			—				12
Load			—				—				(1	)			(3	)			—	(c)			—				(4	)
Discrete Impacts of the 2012 Distribution Formula Rate Order (18)			0.01				—				8				—				—				—				8
Other Energy Delivery (19)			0.42				—				93				(25	)			293				—				361
Operating and Maintenance Expense:
Labor, Contracting and Materials (20)			(0.21	)			(95	)			(27	)			(6	)			(51	)			—				(179	)
Planned Nuclear Refueling Outages (21)			0.01				10				—				—				—				—				10
Pension and Non-Pension Postretirement Benefits (22)			(0.01	)			(8	)			(5	)			7				(5	)			3				(8	)
Other Operating and Maintenance (23)			0.08				24				18				29				11				(14	)			68
Depreciation and Amortization Expense (24)			(0.22	)			(79	)			(34	)			(7	)			(66	)			(2	)			(188	)
Equity in Earnings of Unconsolidated Affiliates (25)			0.03				26				—				—				—				—				26
Income Taxes (26)			0.06				82				(2	)			(15	)			4				(17	)			52
Interest Expense, Net (27)			(0.04	)			(24	)			(3	)			3				(7	)			(4	)			(35	)
Other (28)			(0.07	)			(24	)			3				3				(30	)			(5	)			(53	)
Preferred Securities Redemption (29)			—				—				—				(2	)			—				—				(2	)
Share Differential			(0.14	)			—				—				—				—				—				—
2013 Adjusted (non-GAAP) Operating Earnings (Loss)			2.50				1,202				421				393				195				(62	)			2,149
2013 Adjusted (non-GAAP) Operating Earnings (Loss) Adjustments:
Mark-to-Market Impact of Economic Hedging Activities			0.35				309				—				—				—				1				310
Unrealized Gains Related to NDT Fund Investments (1)			0.09				78				—				—				—				—				78
Plant Retirements and Divestitures (2)			0.02				13				—				—				—				—				13
Asset Retirement Obligation (3)			(0.01	)			(7	)			—				—				—				—				(7	)
Merger and Integration Costs (4)			(0.08	)			(80	)			(2	)			(5	)			2				(2	)			(87	)
Amortization of Commodity Contract Intangibles (6)			(0.41	)			(347	)			—				—				—				—				(347	)
Amortization of the Fair Value of Certain Debt (7)			0.01				7				—				—				—				—				7
Reassessment of State Deferred Income Taxes (9)			—				12				—				—				—				(16	)			(4	)
Midwest Generation Bankruptcy Charges (10)			(0.02	)			(16	)			—				—				—				—				(16	)
Remeasurement of Like-Kind Exchange Tax Position (11)			(0.31	)			—				(170	)			—				—				(97	)			(267	)
Long-Lived Asset Impairments (12)			(0.14	)			(101	)			—				—				—				(9	)			(110	)
2013 GAAP Earnings (Loss)		$	2.00			$	1,070			$	249			$	388			$	197			$	(185	)		$	1,719

 

Note:

Effective in the fourth quarter of 2013 Exelon switched from applying a blended tax rate to applying a marginal tax rate to the drivers and exclusions presented above, resulting in minor changes when comparing to historical earnings release filings.

(a)

For the twelve months ended December 31, 2012, includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed. Therefore, the results of operations from 2013 and 2012 are not comparable for Generation, BGE, Other and Exelon. The explanations below identify any other significant or unusual items affecting the results of operations.

(b)	Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.

(c)	As approved by the Maryland PSC, BGE records a monthly adjustment to rates for residential and the majority of its commercial and industrial customers to eliminate the effect of abnormal weather and usage patterns per customer on distribution volumes.

(1)	Reflects the impact of unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(2)	Reflects the impacts associated with the sale or retirement of generating stations.

(3)	In 2012, primarily reflects an increase in Generation’s decommissioning obligation for spent nuclear fuel at retired nuclear units. In 2013, primarily reflects an increase in Generation’s asset retirement obligation primarily for asbestos at retired fossil power plants.

(4)	Reflects certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

(5)	Reflects costs incurred as part of the Maryland order approving the merger transaction.

(6)	Represents the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.

(7)	Represents the non-cash amortization of certain debt recorded at fair value at the merger date, which was retired in the second quarter of 2013.

(8)	Reflects costs incurred as part of a March 2012 settlement with the FERC to resolve a dispute related to Constellation’s prior period hedging and risk management transactions.

(9)	Reflects the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012.

(10)	For Generation, reflects estimated liabilities pursuant to the Midwest Generation bankruptcy.

(11)	Represents a non-cash charge to earnings resulting from the first quarter 2013 remeasurement of a like-kind exchange tax position taken on ComEd’s 1999 sale of fossil generating assets.

(12)	Reflects a 2013 charge to earnings primarily related to the cancellation of previously capitalized nuclear uprate projects and the impairment of certain wind generating assets.

(13)	Primarily reflects the impact of decreased planned and unplanned nuclear outage days in 2013, including Salem but excluding CENG.

(14)	Primarily reflects the impact of higher nuclear fuel prices during the amortization period, excluding CENG.

(15)	Primarily reflects the impact of increased capacity prices related to the RPM for the PJM market and the inclusion of Constellation’s financial results for the full period in 2013.

(16)	Primarily reflects the impact of decreased realized energy prices, partially offset by the impact of Constellation’s financial results for the full period in 2013.

(17)	For Generation, primarily reflects PJM bill credits in 2012 related to upgrades in transmission assets owned by ComEd, which are reflected as assets at Exelon Corporate.

(18)	Reflects the impacts on distribution revenues recorded prior to December 31, 2011, pursuant to the May and October 2012 orders issued by the ICC on the 2011 performance based formula rate proceeding under EIMA.

(19)

For ComEd, primarily reflects increased distribution revenue due to recovery of increased costs and capital investments and higher allowed ROE pursuant to the formula rate under EIMA and the May 2013 enactment of Senate Bill 9, and increased cost recovery for energy efficiency programs (offset in other operating and maintenance expense), partially offset by decreased revenue associated with uncollectible accounts expense resulting from the timing of regulatory cost recovery (offset in other operating and maintenance expense). For PECO, primarily reflects the decrease in effective rates due to increased usage per customer across all customer classes, decreased cost recovery for energy efficiency and demand response programs (primarily offset in other operating and maintenance expense) and a decrease in gross receipts tax revenue (completely offset in taxes other than income). For BGE, primarily reflects the inclusion of results for the full period in 2013, which includes increased distribution revenue pursuant to electric and natural gas distribution rate case orders issued by the Maryland PSC and increased cost recovery for energy efficiency and demand response programs (primarily offset in depreciation and amortization expense).

(20)	Primarily reflects the inclusion of Constellation and BGE’s results for the full period in 2013, the impacts of inflation across all operating companies and increased EIMA contracting and overtime costs at ComEd, offset in part by the impact of realized merger synergies at Generation.

(21)	Primarily reflects the impact of decreased planned nuclear refueling outage days in 2013, excluding Salem and CENG.

(22)

Primarily reflects the impact of lower actuarially assumed discount rates for 2013, partially offset by favorable 2012 asset return experience relative to expectations, and certain 2012 OPEB plan design changes and positive claims experience in 2012. At Generation, also reflects the impact of costs related to contractual termination benefits in 2012. At PECO, reflects the end of OPEB transition cost amortization in 2012.

(23)

Reflects a decrease in ComEd’s uncollectible accounts expense (primarily offset in other energy delivery revenues), decreased storm costs in PECO and BGE’s service territories, decreased spend on energy efficiency programs at PECO (primarily offset in other energy delivery revenues), partially offset by increased spending on energy efficiency programs at ComEd and the inclusion of Constellation’s and BGE’s results for the full period in 2013.

(24)

Primarily reflects the inclusion of Constellation’s and BGE’s results for the full period in 2013 and increased depreciation expense across the operating companies for ongoing capital expenditures, including wind and solar facilities placed in service at Generation. Reflects increased regulatory asset amortization at ComEd related to higher MGP remediation expenditures and increased regulatory asset amortization at BGE related to higher energy efficiency and demand response program expenditures (primarily offset in other energy delivery revenues).

(25)	Primarily reflects equity of earnings in CENG, partially offset by the non-cash amortization of the fair value basis difference recorded at the merger date.

(26)	Primarily reflects an increase in wind production and investment tax credit benefits at Generation, partially offset by a decrease in benefits related to the gas repairs tax accounting method change recorded in 2012 at PECO and higher prior year benefits from a state tax net operating loss.

(27)	Primarily reflects the inclusion of Constellation and BGE’s results for the full period in 2013. For Generation and BGE, also reflects the impact of higher interest expense due to higher outstanding debt during 2013.

(28)	Primarily reflects the inclusion of Constellation and BGE’s results for the full period in 2013. At PECO, reflects a decrease in gross receipts tax revenue (completely offset in other energy delivery).

(29)	Reflects the impact of the preferred securities redemption at PECO in the second quarter of 2013.

 

11

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		Generation
		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (b)				Adjustments				Adjusted Non-GAAP				GAAP (b)				Adjustments				Adjusted Non-GAAP
Operating revenues		$	3,785			$	79	(c),(d)		$	3,864			$	3,898			$	123	(c),(d),(i)		$	4,021
Operating expenses
Purchased power and fuel			1,915				208	(c),(d)			2,123				2,043				66	(c),(d),(i)			2,109
								(e),(f),(g),												(e),(g),(h)
Operating and maintenance			1,157				(44	)(h),(i)			1,113				1,242				(111	)(i)			1,131
								(e),(f),(g),
Depreciation and amortization			214				(2	)(i)			212				204				(3	)(i)			201
Taxes other than income			97				—				97				97				(3	)(i)			94
Total operating expenses			3,383				162				3,545				3,586				(51	)			3,535
Equity in earnings of unconsolidated affiliates			3				30	(d),(e)			33				(22	)			40	(d)			18
Operating income			405				(53	)			352				290				214				504
Other income and (deductions)
Interest expense			(99	)			—				(99	)			(78	)			(5	)(l)			(83	)
Other, net			138				(118	)(j)			20				54				(20	)(e),(i),(j)			34
Total other income and (deductions)			39				(118	)			(79	)			(24	)			(25	)			(49	)
Income before income taxes			444				(171	)			273				266				189				455
								(c),(d),(e)
								(f),(g),(h)												(c),(d),(e),(g)
Income taxes			179				(89	)(i),(j),(k)			90				127				43	(h),(i),(j),(k),(l)			170
Net income			265				(82	)			183				139				146				285
Net loss attributable to noncontrolling interests			(4	)			4	(f)			—				2				—				2
Net income attributable to membership interest		$	269			$	(86	)		$	183			$	137			$	146			$	283
		Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012 (a)
		GAAP (b)				Adjustments				Adjusted Non-GAAP				GAAP (b)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	15,643			$	547	(c),(d)		$	16,190			$	14,437			$	1,065	(c),(d),(i)		$	15,502
Operating expenses
																				(c),(d),(e),
Purchased power and fuel			8,210				563	(c),(d)			8,773				7,061				607	(i)			7,668
																				(d),(e),(g),
								(e),(f),(g),												(h),(i),(m),
Operating and maintenance			4,534				(285	)(h),(i)			4,249				5,028				(889	)(n)			4,139
Depreciation, amortization, accretion and depletion			856				(5	)(e),(i)			851				768				(47	)(a),(i)			721
Taxes other than income			389				—				389				369				(11	)(i)			358
Total operating expenses			13,989				273				14,262				13,226				(340	)			12,886
Equity in earnings (loss) of unconsolidated affiliates			10				92	(d),(e)			102				(91	)			150	(d),(e)			59
Operating income			1,664				366				2,030				1,120				1,555				2,675
Other income and (deductions)
Interest expense			(357	)			2	(e),(f),(l)			(355	)			(301	)			(16	)(l)			(317	)
Other, net			368				(235	)(e),(i),(j),(l)			133				239				(94	)(e),(i),(j)			145
Total other income and (deductions)			11				(233	)			(222	)			(62	)			(110	)			(172	)
Income before income taxes			1,675				133				1,808				1,058				1,445				2,503
																				(c),(d),(e),
								(c),(d),(e),(f)												(g),(h),(i),
								(g),(h),(i),(j),												(j),(k),(l),
Income taxes			615				(3	)(k),(l)			612				500				459	(m),(n)			959
Net income			1,060				136				1,196				558				986				1,544
Net loss attributable to noncontrolling interests			(10	)			4	(f)			(6	)			(4	)			—				(4	)
Net income attributable to membership interest		$	1,070			$	132			$	1,202			$	562			$	986			$	1,548

 

(a)	Includes financial results for Constellation beginning on March 12, 2012, the date the merger was completed.

(b)	Results reported in accordance with GAAP.

(c)	Adjustment to exclude the mark-to-market impact of Generation’s economic hedging activities.

(d)	Adjustment to exclude the non-cash amortization of intangible assets, net, related to commodity contracts recorded at fair value at the merger date.

(e)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies, and CENG transaction costs.

(f)	Adjustment to exclude the impairment of certain wind generating assets.

(g)	Adjustment to exclude Generation’s asset retirement obligation in 2013 primarily for asbestos at retired fossil power plants and a decrease in Generation’s asset retirement obligation for certain retired fossil-fueled generating stations in 2012.

(h)	Adjustment to exclude estimated liabilities pursuant to the Midwest Generation bankruptcy.

(i)	Adjustment to exclude the impacts associated with the sale or retirement of generating stations.

(j)	Adjustment to exclude the unrealized gains on NDT fund investments to the extent not offset by contractual accounting as described in the notes to the consolidated financial statements.

(k)	Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012.

(l)	Adjustment to exclude the non-cash amortization of certain debt recorded at fair value at the merger date, which was retired in the second quarter of 2013.

(m)	Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.

(n)	Adjustment to exclude costs incurred as part of a March 2012 settlement with the FERC to resolve a dispute related to Constellation’s prior period hedging and risk management transactions.

 

12

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		ComEd
		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	1,068			$	—			$	1,068			$	1,289			$	—			$	1,289
Operating expenses
Purchased power			243				—				243				421				—				421
Operating and maintenance			347				—				347				345				(3	)(b)			342
Depreciation and amortization			168				—				168				152				—				152
Taxes other than income			74				—				74				71				—				71
Total operating expenses			832				—				832				989				(3	)			986
Operating income			236				—				236				300				3				303
Other income and (deductions)
Interest expense			(76	)			—				(76	)			(77	)			—				(77	)
Other, net			8				—				8				27				—				27
Total other income and (deductions)			(68	)			—				(68	)			(50	)			—				(50	)
Income before income taxes			168				—				168				250				3				253
Income taxes			59				—				59				90				1	(b)			91
Net income		$	109			$	—			$	109			$	160			$	2			$	162
		Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	4,464			$	—			$	4,464			$	5,443			$	—			$	5,443
Operating expenses
Purchased power			1,174				—				1,174				2,307				—				2,307
Operating and maintenance			1,368				(2	)(b)			1,366				1,345				(5	)(b)			1,340
Depreciation and amortization			669				—				669				610				—				610
Taxes other than income			299				—				299				295				—				295
Total operating expenses			3,510				(2	)			3,508				4,557				(5	)			4,552
Operating income			954				2				956				886				5				891
Other income and (deductions)
Interest expense			(579	)			287	(c)			(292	)			(307	)			—				(307	)
Other, net			26				—				26				39				—				39
Total other income and (deductions)			(553	)			287				(266	)			(268	)			—				(268	)
Income before income taxes			401				289				690				618				5				623
Income taxes			152				117	(b),(c)			269				239				3	(b)			242
Net income		$	249			$	172			$	421			$	379			$	2			$	381

 

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

(c)	Adjustment to exclude a non-cash charge to earnings resulting from the first quarter 2013 remeasurement of a like-kind exchange tax position taken on ComEd’s 1999 sale of fossil generating assets.

 

13

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

 

		PECO
		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	805			$	—			$	805			$	790			$	—			$	790
Operating expenses
Purchased power and fuel			347				—				347				342				—				342
Operating and maintenance			194				(1	)(b)			193				235				(4	)(b)			231
Depreciation and amortization			58				—				58				56				—				56
Taxes other than income			38				—				38				40				—				40
Total operating expenses			637				(1	)			636				673				(4	)			669
Operating income			168				1				169				117				4				121
Other income and (deductions)
Interest expense			(29	)			—				(29	)			(30	)			—				(30	)
Other, net			2				—				2				2				—				2
Total other income and (deductions)			(27	)			—				(27	)			(28	)			—				(28	)
Income before income taxes			141				1				142				89				4				93
Income taxes			39				—	(b)			39				9				2	(b)			11
Net income			102				1				103				80				2				82
Preferred security dividends			—				—				—				1				—				1
Net income attributable to common shareholder		$	102			$	1			$	103			$	79			$	2			$	81
		Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	3,100			$	—			$	3,100			$	3,186			$	—			$	3,186
Operating expenses
Purchased power and fuel			1,300				—				1,300				1,375				—				1,375
Operating and maintenance			748				(9	)(b)			739				809				(17	)(b)			792
Depreciation and amortization			228				—				228				217				—				217
Taxes other than income			158				—				158				162				—				162
Total operating expenses			2,434				(9	)			2,425				2,563				(17	)			2,546
Operating income			666				9				675				623				17				640
Other income and (deductions)
Interest expense			(115	)			—				(115	)			(123	)			—				(123	)
Other, net			6				—				6				8				—				8
Total other income and (deductions)			(109	)			—				(109	)			(115	)			—				(115	)
Income before income taxes			557				9				566				508				17				525
Income taxes			162				4	(b)			166				127				7	(b)			134
Net income			395				5				400				381				10				391
Preferred security dividends and redemption			7				—				7				4				—				4
Net income attributable to common shareholder		$	388			$	5			$	393			$	377			$	10			$	387

 

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

 

14

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EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		BGE
		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	794			$	—			$	794			$	703			$	—			$	703
Operating expenses
Purchased power and fuel			362				—				362				326				—				326
Operating and maintenance			185				(1	)(b)			184				185				(4	)(b)			181
Depreciation and amortization			95				—				95				80				—				80
Taxes other than income			51				—				51				51				—				51
Total operating expenses			693				(1	)			692				642				(4	)			638
Operating income			101				1				102				61				4				65
Other income and (deductions)
Interest expense			(28	)			—				(28	)			(34	)			—				(34	)
Other, net			4				—				4				5				—				5
Total other income and (deductions)			(24	)			—				(24	)			(29	)			—				(29	)
Income before income taxes			77				1				78				32				4				36
Income taxes			27				—	(b)			27				14				1	(b)			15
Net income			50				1				51				18				3				21
Preference stock dividends			3				—				3				3				—				3
Net income attributable to common shareholders		$	47			$	1			$	48			$	15			$	3			$	18
		Twelve Months Ended December 31, 2013												March 12, 2012 through December 31, 2012
		GAAP (a)				Adjustments				Adjusted Non- GAAP				GAAP (a)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	3,065			$	—			$	3,065			$	2,091			$	113	(c)		$	2,204
Operating expenses
Purchased power and fuel			1,421				—				1,421				1,052				—				1,052
Operating and maintenance			634				3	(b)			637				596				(37	)(b),(c)			559
Depreciation and amortization			348				—				348				238				—				238
Taxes other than income			213				—				213				167				2	(c)			169
Total operating expenses			2,616				3				2,619				2,053				(35	)			2,018
Operating income (loss)			449				(3	)			446				38				148				186
Other income and (deductions)
Interest expense			(122	)			—				(122	)			(111	)			—				(111	)
Other, net			17				—				17				19				—				19
Total other income and (deductions)			(105	)			—				(105	)			(92	)			—				(92	)
Income (loss) before income taxes			344				(3	)			341				(54	)			148				94
Income taxes			134				(1	)(b)			133				(23	)			60	(b),(c)			37
Net income (loss)			210				(2	)			208				(31	)			88				57
Preference stock dividends			13				—				13				11				—				11
Net income (loss) attributable to common shareholders		$	197			$	(2	)		$	195			$	(42	)		$	88			$	46

 

(a)	Results reported in accordance with GAAP.

(b)	Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.

(c)	Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.

 

15

---

EXELON CORPORATION

Reconciliation of Adjusted (non-GAAP) Operating Earnings to

GAAP Consolidated Statements of Operations

(unaudited)

(in millions)

 

		Other (a)
		Three Months Ended December 31, 2013												Three Months Ended December 31, 2012
		GAAP (c)				Adjustments				Adjusted Non- GAAP				GAAP (c)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	(277	)		$	—			$	(277	)		$	(426	)		$	37	(f)		$	(389	)
Operating expenses
Purchased power and fuel			(274	)			—				(274	)			(373	)			—				(373	)
Operating and maintenance			(4	)			(1	)(d)			(5	)			(11	)			(8	)(d)			(19	)
Depreciation and amortization			12				—				12				13				—				13
Taxes other than income			10				—				10				9				—				9
Total operating expenses			(256	)			(1	)			(257	)			(362	)			(8	)			(370	)
Operating loss			(21	)			1				(20	)			(64	)			45				(19	)
Other income and (deductions)
Interest expense			(14	)			—				(14	)			(12	)			—				(12	)
Other, net			10				—				10				5				—				5
Total other income and (deductions)			(4	)			—				(4	)			(7	)			—				(7	)
Loss before income taxes			(25	)			1				(24	)			(71	)			45				(26	)
Income taxes			7				(15	)(d),(e)			(8	)			(58	)			29	(d),(e),(f)			(29	)
Net income (loss)		$	(32	)		$	16			$	(16	)		$	(13	)		$	16			$	3
		Twelve Months Ended December 31, 2013												Twelve Months Ended December 31, 2012 (b)
		GAAP (c)				Adjustments				Adjusted Non- GAAP				GAAP (c)				Adjustments				Adjusted Non- GAAP
Operating revenues		$	(1,371	)		$	(6	)(f)		$	(1,377	)		$	(1,668	)		$	7	(f)		$	(1,661	)
Operating expenses
Purchased power and fuel			(1,368	)			—				(1,368	)			(1,638	)			—				(1,638	)
Operating and maintenance			(14	)			(19	)(d),(g)			(33	)			183				(234	)(d),(i)			(51	)
Depreciation and amortization			52				—				52				48				—				48
Taxes other than income			36				—				36				26				—				26
Total operating expenses			(1,294	)			(19	)			(1,313	)			(1,381	)			(234	)			(1,615	)
Operating loss			(77	)			13				(64	)			(287	)			241				(46	)
Other income and (deductions)
Interest expense			(183	)			81	(h)			(102	)			(86	)			3	(d)			(83	)
Other, net			56				—				56				41				—				41
Total other income and (deductions)			(127	)			81				(46	)			(45	)			3				(42	)
Loss before income taxes			(204	)			94				(110	)			(332	)			244				(88	)
								(d),(e),(f)												(d),(e),(f)
Income taxes			(19	)			(29	)(g),(h)			(48	)			(216	)			160	(i)			(56	)
Net loss		$	(185	)		$	123			$	(62	)		$	(116	)		$	84			$	(32	)

 

(a)    Other primarily includes eliminating and consolidating adjustments, Exelon’s corporate operations, shared service entities and other financing and investment activities.
(b)    For the twelve months ended December 31, 2012, includes financial results for Constellation and BGE beginning on March 12, 2012, the date the merger was completed.
(c)    Results reported in accordance with GAAP.
(d)    Adjustment to exclude certain costs incurred associated with the merger, including employee-related expenses (e.g. severance, retirement, relocation and retention bonuses), integration initiatives, certain pre-acquisition contingencies and CENG transaction costs.
(e)    Adjustment to exclude the non-cash impacts of the remeasurement of state deferred income taxes, primarily as a result of changes in forecasted apportionment in 2013 and as a result of the merger in 2012.
(f)    Adjustment to exclude the intercompany mark-to-market impact of Exelon’s economic hedging activities.
(g)    Adjustment to exclude a charge to earnings related to the impairment of long lived assets.
(h)    Adjustment to exclude a non-cash charge to earnings resulting from the first quarter 2013 remeasurement of a like-kind exchange tax position taken on ComEd’s 1999 sale of fossil generating assets.
(i)    Adjustment to exclude costs incurred as part of the Maryland order approving the merger transaction.

 

16

---

EXELON CORPORATION

Exelon Generation Statistics

 

		Three Months Ended
		Dec. 31, 2013				Sep. 30, 2013				Jun. 30, 2013				Mar. 31, 2013				Dec. 31, 2012
Supply (in GWhs)
Nuclear Generation (a)
Mid-Atlantic			11,900				12,424				11,794				12,762				11,547
Midwest			23,429				23,741				22,807				23,269				23,335
Total Nuclear Generation			35,329				36,165				34,601				36,031				34,882
Fossil and Renewables (a)
Mid-Atlantic (a)(c)			2,951				2,808				2,796				3,160				2,154
Midwest			363				217				318				581				300
New England			1,763				3,609				3,132				2,392				2,368
ERCOT			1,582				2,522				1,617				733				755
Other (d)			1,064				1,913				1,431				2,254				1,358
Total Fossil and Renewables			7,723				11,069				9,294				9,120				6,935
Purchased Power
Mid-Atlantic (b)			3,955				4,289				2,616				3,233				4,332
Midwest			498				707				1,503				1,700				2,661
New England			2,605				2,178				1,365				1,507				2,304
New York (b)			3,493				3,565				3,073				3,511				3,678
ERCOT			2,792				3,803				4,269				4,199				6,043
Other (d)			2,986				3,244				4,998				3,703				4,172
Total Purchased Power			16,329				17,786				17,824				17,853				23,190
Total Supply/Sales by Region (f)
Mid-Atlantic (e)			18,806				19,521				17,206				19,155				18,033
Midwest (e)			24,290				24,665				24,628				25,550				26,296
New England			4,368				5,787				4,497				3,899				4,672
New York			3,493				3,565				3,073				3,511				3,678
ERCOT			4,374				6,325				5,886				4,932				6,798
Other (d)			4,050				5,157				6,429				5,957				5,530
Total Supply/Sales by Region			59,381				65,020				61,719				63,004				65,007
		Three Months Ended
		Dec. 31, 2013				Sep. 30, 2013				Jun. 30, 2013				Mar. 31, 2013				Dec. 31, 2012
Average Margin ($/MWh) (g) (h)
Mid-Atlantic (i)		$	42.38			$	44.26			$	44.64			$	44.04			$	48.24
Midwest (i)			24.00				24.37				27.77				28.08				26.09
New England			9.62				10.71				11.12				7.63				3.64
New York			3.72				(2.52	)			4.56				(6.27	)			4.35
ERCOT			18.06				22.77				19.03				20.54				13.39
Other (d)			13.58				7.95				9.18				7.61				7.96
Average Margin—Overall Portfolio		$	26.42			$	26.19			$	27.33			$	27.23			$	26.52
Around-the-clock Market Prices ($/MWh) (j)
PJM West Hub		$	35.70			$	38.79			$	37.63			$	37.53			$	35.94
NiHub			29.94				32.88				31.77				30.93				28.37
New England Mass Hub ATC Spark Spread			1.33				12.56				4.96				(6.63	)			3.07
NYPP Zone A			38.23				39.75				34.38				40.23				34.70
ERCOT North Spark Spread			2.09				4.39				(0.20	)			(0.66	)			(0.27	)
		Three Months Ended
		Dec. 31, 2013				Sep. 30, 2013				Jun. 30, 2013				Mar. 31, 2013				Dec. 31, 2012
Outage Days (k)
Refueling			94				43				47				49				113
Non-refueling			33				5				31				6				1
Total Outage Days			127				48				78				55				114

 

(a)	Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and does not include ownership through equity method investments (e.g. CENG).

(b)

Purchased power includes physical volumes of 3,226 GWhs, 3,138 GWhs, 3,114 GWhs, 2,588 GWhs, and 3,255 GWhs in the Mid-Atlantic and 3,051 GWhs, 3,147 GWhs, 2,655 GWhs, 3,213 GWhs, and 2,814 GWhs in New York as a result of the PPA with CENG for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012, respectively.

(c)	Excludes generation of Brandon Shores, H.A. Wagner and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the Exelon and Constellation merger.

(d)	Other Regions includes South, West and Canada, which are not considered individually significant.

(e)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.

(f)	Total sales do not include physical trading volumes of 2,696 GWhs, 2,499 GWhs, 1,995 GWhs, 1,572 GWhs, and 2,977 GWhs, for the three months ended December 31, 2013, September 30, 2013, June 30, 2013, March 31, 2013, and December 31, 2012, and respectively.

(g)

Excludes Generation’s other business activities not allocated to a region, including retail and wholesale gas, upstream natural gas, proprietary trading, energy efficiency, energy management and demand response, and the design, construction and operation of renewable energy facilities. Also excludes the financial results of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the merger, amortization of certain intangible assets relating to commodity contracts recorded at fair value as a result of the Exelon and Constellation merger and other miscellaneous revenues not allocated to a region.

(h)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(i)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd and settlements of the ComEd swap in the Midwest region.

(j)	Represents the average for the quarter.

(k)	Outage days exclude Salem and CENG.

 

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EXELON CORPORATION

Exelon Generation Statistics

Twelve Months Ended December 31, 2013 and 2012

 

		December 31, 2013				December 31, 2012 (a)
Supply (in GWhs)
Nuclear Generation (b)
Mid-Atlantic			48,881				47,337
Midwest			93,245				92,525
Total Nuclear Generation			142,126				139,862
Fossil and Renewables (b)
Mid-Atlantic (b)(d)			11,714				8,808
Midwest			1,478				971
New England			10,896				9,965
ERCOT			6,453				6,182
Other (e)			6,664				5,913
Total Fossil and Renewables			37,205				31,839
Purchased Power
Mid-Atlantic (c)			14,092				20,830
Midwest			4,408				9,805
New England			7,655				9,273
New York (c)			13,642				11,457
ERCOT			15,063				23,302
Other (e)			14,931				17,327
Total Purchased Power			69,791				91,994
Total Supply/Sales by Region (g)
Mid-Atlantic (f)			74,687				76,975
Midwest (f)			99,131				103,301
New England			18,551				19,238
New York			13,642				11,457
ERCOT			21,516				29,484
Other (e)			21,595				23,240
Total Supply/Sales by Region			249,122				263,695
		December 31, 2013				December 31, 2012 (a)
Average Margin ($/MWh) (h) (i)
Mid-Atlantic (j)		$	43.78			$	44.60
Midwest (j)			26.09				29.02
New England			9.97				10.19
New York			(0.29	)			6.63
ERCOT			20.26				13.74
Other (e)			9.31				5.64
Average Margin—Overall Portfolio		$	26.79			$	27.45
Around-the-clock Market Prices ($/MWh) (k)
PJM West Hub		$	37.33			$	33.91
NiHub			31.36				28.97
NEPOOL Mass Hub			2.75				6.06
NYPP Zone A			38.23				31.02
ERCOT North Spark Spread			1.40				3.23

 

(a)	Includes results for Constellation beginning on March 12, 2012, the date the merger was completed.

(b)	Includes the proportionate share of output where Generation has an undivided ownership interest in jointly-owned generating plants and does not include ownership through equity method investments (e.g. CENG).

(c)	Purchased power includes physical volumes of 12,067 GWh and 9,925 GWh in the Mid-Atlantic and 12,165 GWh and 9,350 GWh in New York as a result of the PPA with CENG for the twelve months ended December 31, 2013 and 2012, respectively.

(d)	Excludes generation under the reliability-must-run rate schedule and generation of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the Exelon and Constellation merger.

(e)	Other Regions includes South, West and Canada, which are not considered individually significant.

(f)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd in the Midwest region.

(g)	Total sales do not include physical proprietary trading volumes of 8,762 GWh, 5,742 GWh and 3,625 GWh for the years ended December 31, 2013, 2012 and 2011, respectively.

(h)

Excludes Generation’s other business activities not allocated to a region, including retail and wholesale gas, upstream natural gas, proprietary trading, energy efficiency, energy management and demand response, and the design, construction and operation of renewable energy facilities. Also excludes Generation’s compensation under the reliability-must-run rate schedule, the financial results of Brandon Shores, H.A. Wagner, and C.P. Crane, the generating facilities divested in Q4 2012 as a result of the merger, amortization of certain intangible assets relating to commodity contracts recorded at fair value as a result of the Exelon and Constellation merger and other miscellaneous revenues not allocated to a region.

(i)	Excludes the mark-to-market impact of Generation’s economic hedging activities.

(j)	Includes affiliate sales to PECO and BGE in the Mid-Atlantic region and affiliate sales to ComEd and settlements of the ComEd swap in the Midwest region.

(k)	Represents the average for the twelve months ended December 31, 2013 and 2012

 

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EXELON CORPORATION

ComEd Statistics

Three Months Ended December 31, 2013 and 2012

 

		Electric Deliveries (in GWhs)																Revenue (in millions)
		2013				2012				% Change				Weather- Normal % Change				2013				2012				% Change
Retail Deliveries and Sales (a)
Residential			6,646				6,183				7.5	%			2.0	%		$	485			$	665				(27.1	)%
Small Commercial & Industrial			7,920				7,792				1.6	%			(0.7	)%			303				342				(11.4	)%
Large Commercial & Industrial			6,752				6,595				2.4	%			(0.0	)%			100				99				1.0	%
Public Authorities & Electric Railroads			358				340				5.3	%			(1.6	)%			13				13				0.0	%
Total Retail			21,676				20,910				3.7	%			0.4	%			901				1,119				(19.5	)%
Other Revenue (b)																			167				170				(1.8	)%
Total Electric Revenue																		$	1,068			$	1,289				(17.1	)%
Purchased Power																		$	243			$	421				(42.3	)%

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			2,487				2,030				2,293				22.5	%			8.5	%
Cooling Degree-Days			25				3				11				733.3	%			127.3	%

Twelve Months Ended December 31, 2013 and 2012

		Electric Deliveries (in GWhs)																Revenue (in millions)
		2013				2012				% Change				Weather- Normal % Change				2013				2012				% Change
Retail Deliveries and Sales (a)
Residential			27,800				28,528				(2.6	)%			(0.0	)%		$	2,073			$	3,037				(31.7	)%
Small Commercial & Industrial			32,305				32,534				(0.7	)%			(0.5	)%			1,250				1,339				(6.6	)%
Large Commercial & Industrial			27,684				27,643				0.1	%			(0.3	)%			427				395				8.1	%
Public Authorities & Electric Railroads			1,355				1,272				6.5	%			8.2	%			48				44				9.1	%
Total Retail			89,144				89,977				(0.9	)%			(0.2	)%			3,798				4,815				(21.1	)%
Other Revenue (b)																			666				628				6.1	%
Total Electric Revenue																		$	4,464			$	5,443				(18.0	)%
Purchased Power																		$	1,174			$	2,307				(49.1	)%

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			6,603				5,065				6,341				30.4	%			4.1	%
Cooling Degree-Days			933				1,324				842				(29.5	)%			10.8	%
Number of Electric Customers		2013				2012
Residential			3,480,398				3,455,546
Small Commercial & Industrial			367,569				365,357
Large Commercial & Industrial			1,984				1,980
Public Authorities & Electric Railroads			4,853				4,812
Total			3,854,804				3,827,695

 

(a)    Reflects delivery volumes and revenues from customers purchasing electricity directly from ComEd and customers purchasing electricity from a competitive electric generation supplier, as all customers are assessed delivery charges. For customers purchasing electricity from ComEd, revenue also reflects the cost of energy and transmission.

(b)    Other revenue primarily includes transmission revenue from PJM. Other items include rental revenues, revenues related to late payment charges, assistance provided to other utilities through mutual assistance programs, recoveries of environmental costs associated with MGP sites, and intercompany revenues.

 

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EXELON CORPORATION

PECO Statistics

Three Months Ended December 31, 2013 and 2012

 

		Electric and Gas Deliveries																Revenue (in millions)
		2013				2012				% Change				Weather- Normal % Change				2013				2012				% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential			3,207				3,079				4.1	%			(0.3	)%		$	395			$	392				0.8	%
Small Commercial & Industrial			1,990				1,908				4.3	%			0.8	%			109				105				3.8	%
Large Commercial & Industrial			3,742				3,708				0.9	%			(0.4	)%			51				53				(3.8	)%
Public Authorities & Electric Railroads			218				229				(4.9	)%			(4.9	)%			7				7				0.0	%
Total Retail			9,157				8,924				2.6	%			(0.3	)%			562				557				0.9	%
Other Revenue (b)																			60				54				11.1	%
Total Electric Revenue																			622				611				1.8	%
Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)			18,725				17,466				7.2	%			0.8	%			176				165				6.7	%
Transportation and Other			7,209				7,290				(1.1	)%			(4.1	)%			7				14				(50.0	)%
Total Gas			25,934				24,756				4.8	%			(0.6	)%			183				179				2.2	%
Total Electric and Gas Revenues																		$	805			$	790				1.9	%
Purchased Power and Fuel																		$	347			$	342				1.5	%

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			1,577				1,482				1,629				6.4	%			(3.2	)%
Cooling Degree-Days			65				31				19				109.7	%			242.1	%

Twelve Months Ended December 31, 2013 and 2012

 

		Electric and Gas Deliveries																Revenue (in millions)
		2013				2012				% Change				Weather- Normal % Change				2013				2012				% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential			13,341				13,233				0.8	%			(0.0	)%		$	1,592			$	1,689				(5.7	)%
Small Commercial & Industrial			8,101				8,063				0.5	%			(1.1	)%			433				462				(6.3	)%
Large Commercial & Industrial			15,379				15,253				0.8	%			1.5	%			224				232				(3.4	)%
Public Authorities & Electric Railroads			930				943				(1.4	)%			(1.4	)%			30				31				(3.2	)%
Total Retail			37,751				37,492				0.7	%			0.3	%			2,279				2,414				(5.6	)%
Other Revenue (b)																			221				226				(2.2	)%
Total Electric Revenue																			2,500				2,640				(5.3	)%
Gas (in mmcfs)
Retail Deliveries and Sales
Retail Sales (c)			57,613				49,767				15.8	%			(0.1	)%			562				509				10.4	%
Transportation and Other			28,089				26,687				5.3	%			0.5	%			38				37				2.7	%
Total Gas			85,702				76,454				12.1	%			0.1	%			600				546				9.9	%
Total Electric and Gas Revenues																		$	3,100			$	3,186				(2.7	)%
Purchased Power and Fuel																		$	1,300			$	1,375				(5.5	)%

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			4,474				3,747				4,603				19.4	%			(2.8	)%
Cooling Degree-Days			1,411				1,603				1,301				(12.0	)%			8.5	%

 

Number of Electric Customers		2013				2012				Number of Gas Customers		2013				2012
Residential			1,423,068				1,417,773			Residential			458,356				454,502
Small Commercial & Industrial			149,117				148,803			Commercial & Industrial			42,174				41,836
Large Commercial & Industrial			3,105				3,111			Total Retail			500,530				496,338
Public Authorities & Electric Railroads			9,668				9,660			Transportation			909				903
Total			1,584,958				1,579,347			Total			501,439				497,241

 

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from PECO and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from PECO, revenue also reflects the cost of energy and transmission.

(b)	Other revenue includes transmission revenue from PJM and wholesale electric revenues.

(c)

Reflects delivery volumes and revenues from customers purchasing natural gas directly from PECO and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from PECO, revenue also reflects the cost of natural gas.

 

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EXELON CORPORATION

BGE Statistics

Three Months Ended December 31, 2013 and 2012

 

		Electric and Gas Deliveries												Revenue (in millions)
		2013				2012				% Change				2013				2012				% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential			3,227				3,026				6.6	%		$	347			$	314				10.5	%
Small Commercial & Industrial			735				674				9.1	%			60				55				9.1	%
Large Commercial & Industrial			3,293				3,378				(2.5	)%			106				91				16.5	%
Public Authorities & Electric Railroads			78				80				(2.5	)%			8				7				14.3	%
Total Retail			7,333				7,158				2.4	%			521				467				11.6	%
Other Revenue (b)															71				62				14.5	%
Total Electric Revenue															592				529				11.9	%
Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales			28,166				26,333				7.0	%			180				159				13.2	%
Transportation and Other (d)			4,082				3,145				29.8	%			22				15				46.7	%
Total Gas			32,248				29,478				9.4	%			202				174				16.1	%
Total Electric and Gas Revenues														$	794			$	703				12.9	%
Purchased Power and Fuel														$	362			$	326				11.0	%

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			1,690				1,616				1,678				4.6	%			0.7	%
Cooling Degree-Days			39				25				26				56.0	%			50.0	%

Twelve Months Ended December 31, 2013 and March 12, 2012 Through December 31, 2012

		Electric and Gas Deliveries												Revenue (in millions)
		2013				2012				% Change				2013				2012				% Change
Electric (in GWhs)
Retail Deliveries and Sales (a)
Residential			13,077				10,134				n.m.			$	1,404			$	996				n.m.
Small Commercial & Industrial			3,035				2,403				n.m.				257				197				n.m.
Large Commercial & Industrial			14,339				12,160				n.m.				439				318				n.m.
Public Authorities & Electric Railroads			317				266				n.m.				31				25				n.m.
Total Retail			30,768				24,963				n.m.				2,131				1,536				n.m.
Other Revenue (b)															274				198				n.m.
Total Electric Revenue															2,405				1,734				n.m.
Gas (in mmcfs)
Retail Deliveries and Sales (c)
Retail Sales			94,020				57,881				n.m.				592				312				n.m.
Transportation and Other (d)			12,210				12,221				n.m.				68				45				n.m.
Total Gas			106,230				70,102				n.m.				660				357				n.m.
Total Electric and Gas Revenues														$	3,065			$	2,091				n.m.
Purchased Power and Fuel														$	1,421			$	1,052				n.m.

 

														% Change
Heating and Cooling Degree-Days		2013				2012				Normal				From 2012				From Normal
Heating Degree-Days			4,744				3,804				4,661				n.m.				1.8	%
Cooling Degree-Days			869				1,012				864				n.m.				0.6	%

 

Number of Electric Customers		2013				2012				Number of Gas Customers		2013				2012
Residential			1,120,431				1,116,233			Residential			611,532				610,827
Small Commercial & Industrial			112,850				112,994			Commercial & Industrial			44,162				44,228
Large Commercial & Industrial			11,652				11,580			Total Retail			655,694				655,055
Public Authorities & Electric Railroads			292				319			Transportation			—				—
Total			1,245,225				1,241,126			Total			655,694				655,055

 

(a)

Reflects delivery volumes and revenues from customers purchasing electricity directly from BGE and customers purchasing electricity from a competitive electric generation supplier as all customers are assessed distribution charges. For customers purchasing electricity from BGE, revenue also reflects the cost of energy and transmission.

(b)	Other revenue includes wholesale transmission revenue and late payment charges.

(c)

Reflects delivery volumes and revenues from customers purchasing natural gas directly from BGE and customers purchasing natural gas from a competitive natural gas supplier as all customers are assessed distribution charges. For customers purchasing natural gas from BGE, revenue also reflects the cost of natural gas.

(d)

Transportation and other gas revenue includes off-system revenue of 4,082 mmcfs ($19 million) and 3,145 mmcfs ($14 million) for the three months ended December 31, 2013 and 2012, respectively, and 12,210 mmcfs ($55 million) and 12,221 mmcfs ($40 million) for the twelve months ended December 31, 2013 and from March 12, 2012 through December 31, 2012, respectively.

 

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